CIF Capital.Com SV Investments Ltd. Has Been Fined by CySEC for Failing to Comply with Article 16

Company executives were slapped with a $500,000 punishment after it was discovered they had violated anti-market abuse regulations.

There were concerns raised that 'some transactions might constitute insider trading.'

Board of CySEC fines CIF Capital.Com S.V. Investments Lt.c. It was announced that CIF Capital.Com SV Investments Ltd. has been fined 10,000 euros by CySEC in a statement posted on its website.On March 14, 2022, the Board of the Cyprus Securities and Exchange Commission (the “CySEC”) voted to fine CIF Capital.Com SV Investments Ltd (the “Company”) €10.000 for non-compliance with article 16(2) of Regulation (EU) 596/2014 on market abuse, after receiving two suspicious transactions and orders reports for its reasonable suspicions that CIF SV Investments Ltd (the “Company”) was engaging in market manipulation.

Market abuse prevention and detection are addressed in Article 16. Section 2 of Article 16 reads as follows:

Scam orders and transactions must be reported to the appropriate authorities by any professional who arranges or executes transactions.

Anyone who suspects an order or transaction in any financial instrument may constitute insider dealing, market manipulation (or an attempted insider dealing or market manipulation), should immediately alert the relevant authorities as stated in paragraph 3 of this article.

CySEC penalized Atlantic Securities Ltd. in January 2022 for violating Article 16 of CySEC's regulations (2). In contrast to CIF Capital.Com SV Investments Ltd., Atlantic Securities received a punishment of just 3,000 euros.

Asked by Capital.com

Following our communication with them about the fine, we have got the following comment from capital.com:

The Cyprus Securities and Exchange Commission has notified us that it has levied a fine against us (CySec). Due to the late reporting of a market abuse case by two of our customers, we have been fined. The discovery dates back over a year.

In the meanwhile, we're working with CySec to look into the alert. To this end, Capital.com has made it a priority to foster a culture of regulatory compliance across the company. All regulatory events will be reported as soon as they occur.

First-time Capital.com has gotten a fine notice from CySec. We've made further changes to our procedures to make sure future instances are reported more quickly.

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